Vuyo Zungula Exposes How Foreigners Are Secretly Using SA Landlords’ IDs To Register Spaza Shops

African Transformation Movement Member of Parliament Vuyo Zungula has submitted detailed parliamentary questions to the Minister of Small Business Development, demanding urgent state action over allegations that foreign nationals are fraudulently utilizing South African landlords’ identity documents without consent to register informal spaza shop enterprises. Referencing findings from the Public Protector’s report on spaza shop food safety, Zungula highlighted growing concerns over unlawful business ownership structures that leave local property owners exposed to severe, unverified tax liabilities.

Zungula requested specific details regarding inter-departmental interventions undertaken in collaboration with the South African Revenue Service and the Companies and Intellectual Property Commission to dismantle fraudulent registration practices and protect innocent property holders from administrative exploitation. In addition, the opposition lawmaker criticized the sluggish disbursement of the national Spaza Shop Support Fund, pointing out that strict documentation mandates and acute municipal capacity deficits continue to prevent local township entrepreneurs from accessing state financial assistance.

To address systemic regulatory failures across the informal retail sector, Zungula inquired whether the Ministry plans to introduce a centralized, one-stop business licensing authority modeled on the structure of the Gauteng Liquor Board. He argued that establishing a single, streamlined body would significantly enhance regulatory compliance, standardize operational permits, and improve overall transparency within township economies. The inquiry further sought clarification on scheduled community engagement initiatives, support mechanisms for local traders during compliance sweeps, and alternative legal frameworks to assist property owners and unemployed youth through the repurposing of commercial township premises.

In its formal written response, the Department of Small Business Development outlined plans to coordinate with revenue authorities, provincial structures, and local municipalities to establish verified data-sharing networks covering business registrations and state financial support. The executive confirmed that verified instances of misrepresentation, fronting, and identity manipulation will be referred directly to law enforcement authorities and regulatory bodies, including the Broad-Based Black Economic Empowerment Commission, for comprehensive criminal and administrative investigation.

The department further revealed that work is underway to build a national digital platform designed to guide business registration, streamline permit applications, and coordinate municipal compliance services. However, officials clarified that legal licensing powers remain vested within local government structures and existing statutory regulators under current legislative frameworks. Regarding financial support, the department indicated that landlords seeking to operate commercial spaza shops independently must fulfill all statutory municipal regulations and submit formal applications to qualify for available state funding programs.

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